The global elevator modernization market size was valued at $7,781.2 million in 2020, and is projected to reach $19,941.6 million by 2030, registering a CAGR of 9.4% from 2021 to 2030. Elevator modernization is the process of upgrading important components of an elevator. Elevator systems consist of a wide range of components that undergo wear and tear, thereby creating a requirement for modernization to maintain efficiency, safety, and performance of the system. In addition, modernization enhances the aesthetic appearance along with the quality of the elevator.
Countries across the globe have experienced rapid urbanization in the past few decades. This significantly increased the population density in urban areas, thereby creating a need for vertical expansion of cities. Thus, increase in number of elevated buildings drives the use of elevators. Elevator systems are composed of various complex components such as control units, machine drives, counter weights, and signaling features. Thus, modernization of such components plays a key role in maintaining the safety, performance, and aesthetic appearance of elevators. Furthermore, modernization helps commercial and industrial building to keep their elevators on par with advancements in elevator technology. However, elevators with worn out components can cause fatal accidents. Thus, local governing authorities are implementing new laws to maintain safety of elevators. In addition, increase in awareness among people regarding elevator safety has positively influenced the market. Furthermore, elevator modernization market growth is driven by advancements in elevator technology.
According to the Department of Economic and Social Affairs, United Nations, the world population living in urban areas is anticipated to reach 68% by 2050, up from 55% in 2018. This will add an estimated 2.5 billion people to urban areas by 2050. Thus, increase in urban population will increase the use of elevators in commercial buildings and public transport systems, thereby creating a demand for modernization of elevators. Furthermore, according to Hitachi, Ltd., in 2020, there were approximately 900,000 operational elevators and escalators in Japan.
These included around 35,000 elevators or escalators that were operational for over 25 years and are due for total replacement or extensive modernization. Major players in the industry are launching new products and focusing on business expansion to strengthen their foothold in the market. For instance, in February 2022, Otis India launched Ambiance elevator cab aesthetics range and its Gen2 elevators. In June 2021, TK Elevator acquired Accurate Elevator, which is a Florida-based company that offers new installation, modernization, maintenance, and repair services. These factors drive the growth of elevator modernization market.
By Residential
Residential held a majority share of the market in 2020
The novel coronavirus rapidly spread across various countries and regions, causing an enormous impact on the lives of people and the overall community. It began as a human health condition and has now become a significant threat to global trade, economy, and finance. The COVID-19 pandemic has negatively affected repair, maintenance, and modernization of building systems across the globe. Furthermore, the negative economic impact of COVID-19 restricted the use of commercial building and public transport systems, thereby resulting in less use of elevators. However, the number of COVID-19 cases are expected to reduce in the near future as the vaccine for COVID-19 is introduced in the elevator modernization market. This increased the requirement of commercial spaces, thereby boosting the maintenance and modernization industry. This will help the market to recover by the start of 2022. Companies involved in elevator modernization must focus on protecting their staff, operations, and supply networks to respond to urgent emergencies and establish new methods of working post-pandemic.
Furthermore, technological advancements not only enhance the operations of elevators, but also improve the aesthetic appearance of cabins. In addition, major players in the market strengthen their foothold by providing more modernization components and by focusing on enhancing service and reducing elevator downtime.
By Equipment
Controllers is expected to hold a majority share of the market throughout the study period
The elevator modernization market is segmented on the basis of elevator type, component, end user, and region. By elevator type, the market is divided into traction and hydraulic. Depending on component, it is categorized into controller, door equipment, cabin enclosure, and others. According to end user, it is segmented into residential, commercial, and industrial. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Competition Analysis
The key companies profiled in the elevator modernization market report include Escon Elevators, Fujitec Co. Ltd., Hitachi Ltd., Hyundai Elevator Co., Ltd., KONE Corporation, Mitsubishi Electric Corporation, OTIS Worldwide Corporation, Schindler, TK Elevator, and Toshiba Corporation.
By Region
Asia-Pacific held a dominant position in 2020 and would continue to grow at a significant CAGR during the forecast period.
Key Benefits For Stakeholders
- The report provides an extensive analysis of the current and elevator modernization market trends and dynamics.
- In-depth elevator modernization market analysis is conducted by constructing market estimations for key market segments between 2021 and 2030.
- Extensive analysis of the elevator modernization market is conducted by following key product positioning and monitoring of top competitors within the market framework.
- A comprehensive analysis of all the regions is provided to determine the prevailing opportunities.
- The global elevator modernization market forecast analysis from 2021 to 2030 is included in the report.
- The key players within escalator market are profiled in this report and their strategies are analyzed thoroughly, which help understand the competitive outlook of the elevator modernization industry.
Elevator Modernization Market Report Highlights
| Aspects | Details |
 By ELEVATOR TYPE |
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 By COMPONENT |
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 By END USER |
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 By Region |
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Analyst Review
The elevator modernization market witnessed significant growth in past few years, owing to increase in demand form residential and commercial sector.
Increase in public awareness regarding elevator safety has positively influenced the elevator modernization market. Elevator modernization helps in extending elevator life, thereby eliminating the necessity for expensive elevator replacements. Furthermore, advancements in technology significantly improve elevator rise quality, performance, and safety. These factors have increased the adaption of elevator modernization in residential buildings, commercial buildings, and public transport systems such as metros and airport. In addition, advantages such as reduced noise and vibration levels boost the demand for elevator modernization systems.
Moreover, development of advanced technologies such as machine room less elevators provides lucrative opportunities for the growth of market.
The global elevator modernization market size was $ 7.8 billion in 2020 and is projected to reach $20.0 billion in 2030, growing at a CAGR of 9.4% from 2021 to 2030.
The forecast period considered for the elevator modernization market is 2021 to 2030, wherein, 2020 is the base year, 2021 is the estimated year, and 2030 is the forecast year.
The base year considered in the elevator modernization market is 2020.
The report for global elevator modernization market doesn’t provides Value Chain Analysis, but if there is a requirement for the same, it could be added as an additional customization.
On the basis of components, the controller segment is expected to be the most influencing segment.
Based on the end user, in 2020, the residential segment generated the highest revenue, accounting for over half of the market, and is projected to grow at a CAGR of 9.1% from 2021to 2030.
The report contains an exclusive company profile section, where leading 25 companies in the market are profiled. These profiles typically cover company overview, geographical presence, and market dominance (in terms of revenue).
The market value of global elevator modernization market is $8.8 billion in 2021.
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